Employment Cost Calculator for Bahrain
Calculate your complete hiring costs for Bahrain employees, including payroll taxes, social security contributions, employee benefits, and management fees. This salary calculator provides accurate employer cost estimates for informed hiring decisions.
Employer Tax Contributions
| Tax Type | Rate | Base |
|---|---|---|
| Social Insurance (Bahraini) | 17% | Gross monthly salary (capped at BHD 4,000) |
| Social Insurance (Expatriate) | 3% | Gross monthly salary (covers work injury insurance) |
| Unemployment Insurance (Employer) | 1% | Insured's wages |
| End-of-Service Benefits (Non-Bahraini) | 4.2% (first 3 years); 8.4% (subsequent years) | Employee's monthly wage |
Filing & Compliance
- Social insurance contributions must be remitted to the Social Insurance Organization (SIO) monthly.
- Monthly contributions for end-of-service benefits for non-Bahraini employees must be paid to the SIO by the 15th of each month.
- Employers must pay salaries electronically through banks and financial institutions licensed by the Central Bank of Bahrain via the Wage Protection System (WPS).
Income Tax Brackets
| Income Range | Tax Rate |
|---|---|
| All Income | 0% |
Employee Contributions
| Deduction Type | Rate | Cap |
|---|---|---|
| Social Insurance (Bahraini) | 8% | BHD 4,000/month |
| Social Insurance (Expatriate) | 1% | BHD 4,000/month |
| End-of-service benefits (Non-Bahraini, SIO) | 4.2% (first 3 years); 8.4% (thereafter) | No specific cap mentioned |
Personal Allowances
- Bahrain does not impose personal income tax on salaries or wages.
- No income tax-related deductions or allowances can be claimed against employment income.
- The primary mandatory deduction is social security contributions.
